APUEA Magazine-no.6 September 2019

APUEA Magazine | No.6 / September 2019
quickly and probably lead to other
business models as well. I think they
understands what we are doing. I think
they are positive about the impact of the
PPA business model, but they cannot
make a quick decision because they
cannot go back once they have made the
announcement.
Q: How are other companies
working to promote the PPA
business model?
As you can see in the newspapers, there
are many attempts to influence policy
change from other companies like Banpu
Infinergy, Gunkul, Bangchak, and many
foreign companies who are also using the
PPAs business model. They explain that
this business model is not harmful to the operation of the
power grid and that the business is helping the industry and
the private sector to reduce electricity costs and infuse clean
energy into the business operation. I believe that the government
understands this, but it is a political decision, and the
government has to be careful.
Q: Do you look at international experience that
Thailand can adapt to?
Yes, for example, Germany and Denmark operate power grids
very well. In 2016, we held a private forum called “Wind Day” in
Thailand. We invited a speaker from Energinet Denmark, which
is a state- owned power grid operator. He explained the whole
story of the solar PV development in Denmark, which, in the
past, looked like Thailand today. However, Thailand is 20 years
behind Denmark, when the grid still has a single buyer
structure. Today, the electricity grid in Denmark is open to
solar PV systems, and they have high grid reliability, including
a high percentage of power from renewable energy.
Q: What do you think about the future? How will you
develop your company and business model?
Things are slowly changing, but to modernize and make an
impact in the energy sector, the first thing that has to change
is the whole structure of Thailand’s energy sector. If we still
have PEA, EGAT, and MEA using the single buyer model, there is
no way we can move forward.
Singapore and the Philippines have open energy markets,
meaning that they can welcome many solutions and
technologies as electricity producers. When you have an
opportunity to receive many ideas and solutions, that’s the
underline secret of how things develop. However, if the
government unlock the market by, for example, starting from
the retail or distribution side, you will see a lot of ideas flowing
to the Thailand market. If looking at other countries in South
East Asia (SEA), there is potential for improvement as many
countries have similar energy markets like Thailand (100%
government control). And with a population of 600 million in
SEA, there will be many business opportunities when the
markets are opened.
We at Impact Solar are
putting a lot of work into
analyzing the market from
a customer perspective so
that we can educate our
customers about the full
benefits of our products.
This means that the
customers understand all
of the benefits and don’t
come back to us after one
or two years and complain
or raise questions about
the system.
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I think the grid should be unlocked bit by bit. As a first step, the
government should consider opening the last mile (the lowest
voltage) that links to retail, households, and manufacturing. In
Singapore, companies like Microsoft, Apple, and Facebook
have their regional headquarter. These companies want to
use renewable energy, and I think this could be interesting for
the Thailand market as well. This could lead to many
interesting opportunities. EGAT, PEA and MEA is speeding up to
disrupt themselves with many energy technology adaptations
compared to a few years ago. This proves that everyone wants
to survive into the future and that enlightenment is the first
step of transformation.
Q: In May 2019, a pilot program for 100 MW Solar PV
systems dedicated to household rooftops was
presented. The program includes projects with a
capacity of 5-10 kW each. Will you go into this
market?
Yes, we plan to enter this market. We think that it has potential
as the Power Development Plan (PDP) stretches over 20 years
and will allow 100 MW per year for first 10 years and a total of
10,000 MW. The price for selling back to the grid is 1.6
Baht/kWh. This is not a good price but considering that the
retail electricity tariff is about 4.4 Baht/kWh, using solar PV
systems for self-consumption will make the plan attractive.
We at Impact Solar are putting a lot of work into analyzing the
market from a customer perspective so that we can educate
our customers about the full benefits of our products. This
means that the customers understand all of the benefits and
don’t come back to us after one or two years and complain or
raise questions about the system. We feel that there is a lack
of end-customer perspective in the market, so communication
is very important.
The next thing we will look into is energy storage and digital
platforms. This will allow us to adapt to the customers’ needs
and prepare for the future as electricity can be sold on the
grid to other industries. Energy storage will improve our
flexibility to deliver excess electricity to consumers and will,
on the whole, lead to more sustainable power production/
consumption. Digital platforms will enable the distributed
generation technology and business model to be widely
adopted.